The nation’s second-largest privately held food service distributor is now owned by Performance Food Group Co.
Goochland County-based Performance Food completed the acquisition of Reinhart Foodservice LLC from Reyes Holdings LLC in a $2 billion all-cash deal. The transaction closed Monday.
By buying Reinhart Foodservice, Performance Food said it is on track to generate about $30 billion in annual revenue and is positioned to be one of the largest distributors in the U.S.
Performance Food had $19.7 billion in revenue for the fiscal year that ended June 29. Sales increased 37.5% to $6.2 billion in its current fiscal first quarter, which ended Sept. 28 .
Reinhart Foodservice, based in Rosemont, Ill., has more than $6 billion in annual net sales.
“Reinhart brings complementary strengths that will expand Performance Foodservice’s broadline presence, improve our network efficiency and help us achieve our long-term growth goals,” said Craig Hoskins, Performance Food Group’s executive vice president and president and CEO of the company’s foodservice division. “There will be many opportunities for our organizations to learn from each other as Reinhart becomes an important part of PFG’s Foodservice Segment.”
The company said the acquisition expands its geographic reach and overall scale. Reinhart Foodservice operates 26 distribution centers, including two in Virginia — in Suffolk and Manassas.
Reinhart Foodservice also has a diverse customer base that includes independent restaurants, health care and education segments. Its portfolio of proprietary brands broadens Performance Food’s offering, the company said.
Performance Food said it expects to achieve about $50 million in annual cost synergies in the third full fiscal year following the close of the transaction, primarily in procurement, operations and logistics. The company said the deal should be accretive to earnings — in the low single digits to adjusted diluted earnings per share in the first full fiscal year following the close and in low double digits in the third full fiscal year.
The company said it expects to spend about $90 million in information technology upgrades and integration over the next five years.
Performance Food is one of the nation’s largest food service companies, supplying food and food-related products to such businesses as restaurants, health care facilities, universities and movie theaters. It operates mores than 100 distribution centers and employs nearly 25,000 workers.